Chris Warne’s Post

7-Eleven's recent financial struggles in North America, notably the U.S., have been the talk of the c-store industry in recent weeks, as the company is set to shutter nearly 450 underperforming locations. As it looks to foodservice to help bolster its business, the company appears intent on learning a thing or two from the second-largest grocery chain in the continent. Just recently, it tapped one of Albertsons top executives, Brandon Brown, to lead its fresh food programs. I'm curious: What practices from the grocery world could 7-Eleven use to boost its foodservice operations?

While some customers still think of c-stores as a fuel-up spot with a “smokes and Cokes” store attached, many companies are changing those perceptions. Chains like Casey’s General Stores, Wawa and Buc-ee’s are becoming renowned for the meals customers can find inside. As the landscape continues to change, C-Store Dive has put together a selection of top foodservice-related news since the beginning of 2024. https://lnkd.in/eUA77XVY

In-N-Out Burger has the right idea. If I were advjsing a growing retail grocer OR an emerging brand on growth strategy, and they asked which company they should emulate, my answer would be the same: 👉In-N-Out burger has just over 400 stores, spread across 8 contiguous states. 👉Since they are fundamentally opposed to frozen supply chain, all of their stores are within a one day drive of their fresh ingredient supply. 👉Thus, their transportation and operations expenses are MUCH lower than if they spread their 400 stores coast-to-coast. 👉As they have grown, they NEVER compromised on quality, and never lost focus on their core customer. 👉They “overpay” their employees to make sure they have above average TM loyalty, low turnover, and a promote-from-within culture. 👉They foster a cultish word of mouth and social media following with “secret menus” and ordering lingo, and “scarcity” of their store openings. 👉They are family owned, and virtually debt-free, and seemingly can make quick top-down strategic decisions without too many “cooks in the kitchen” Anyone who can follow this blueprint in grocery will put themselves in a great position to win for the long haul. Pod Foods #innovation #grocery https://lnkd.in/eNjApRxW

How can locally owned convenience stores compete with national grocery chains in 2024? One company, Hunt Brothers Pizza, offers a simple, innovative strategy that adapts with regional market conditions. Check out the story from CStore Decisions below for some pizza prosperity. 🍕🤑🍕

Wegmans Food Markets is MOVING into the Pittsburgh area: A great article by Reporter Mark Belko and Anya Litvak from Pittsburgh Post-Gazette discussing one of the country’s most popular groceries, Wegmans Food Market. The store will be Wegmans first in the Pittsburgh region and will shake up a local grocery market that includes the likes of Giant Eagle, Inc., Walmart, ALDI USA, Target, Shop n Save, Sam's Club, Costco Wholesale, and BJ's Wholesale Club. Burt Flickinger, managing director of Strategic Resource Group, an international consumer industry consulting firm with a focus on retail, said Wegmans’ move into Cranberry, PA could establish a toehold for a westward expansion into Ohio to battle the likes of Kroger, Meijer, and Publix Super Markets, a Lakeland, Fla.-based chain that has been expanding to the North. “The key thing is that it’s good for Pittsburgh. It’s good for competition,” I said, though I predict that businesses like Target, Shop ‘n Save, drugstores and dollar stores could lose out in the scrum. At the same time, I envision Wegmans Food Markets and Giant Eagle, Inc., two family-owned chains, battling out for the biggest share of the Pittsburgh market. Wegmans, I opined, is strongest in areas like bakery, seafood, fresh meats, and produce, while Giant Eagle has advantages in areas like dairy, general groceries, frozen foods, pharmacy and rewards programs. Wegmans, I added, also has been moving more toward private label brands in recent years, perhaps giving Giant Eagle an edge with name brands. “This is going to be worth the price of admission,” in anticipation of the head-to-head clash. “This is going to be a The Stanley Cup-worthy competition in Pittsburgh.” Link to Article: https://lnkd.in/eRWiRgHA #wegmans #pittsburgh #grocerychains #postgazette #gianteagle #aldiusa #costco #stanleycup #wegmans #walmart #target #foodretail #supermarket #kroger #meijer #publix #bjswholesale

📈 Ahhh, Thursday. We're almost to the weekend folks. Wednesday saw minimal market fluctuations as investors geared up for more earnings reports. The NASDAQ edged up by 0.10%, the S&P 500 barely moved, finishing just 0.02% above the open, while the Dow Jones dipped slightly by 0.11%. 🌯 Chipotle Mexican Grill Inc. (CMG) raised its annual forecast, riding high on increased demand driven by limited-time promotions like chicken al pastor. The numbers speak volumes: -Revenue: $2.70B vs. $2.67B Expected -Earnings Per Share: $13.37 vs. $11.66 Expected -Same-store Sales Growth: 7% vs. 5.13% Expected What's fueling this success? High-priced limited-time offerings such as Braised Beef Barbacoa and Chicken al Pastor, despite challenging market conditions. Although foot traffic rose by 5.4%, the average spend per customer saw a modest 1.6% increase, slightly below the predicted 2.0% rise. 🚀 Chipotle's expansion plans are in full swing. In Q1 alone, they opened 47 new restaurants, with 43 featuring Chipotlane drive-thru concepts. Their vision for the year? Introduce between 285 and 315 new establishments, with over 80% embracing the drive-thru concept. They aim to hit a total of 7,000 restaurants across North America in the future, doubling the current count of 3,500. 🛒 In 2023, Kroger clinched the top spot in Houston's grocery wars, surpassing H-E-B and affiliates to become the supermarket with the largest market share in the Houston area, commanding 22.7%. Together, Kroger and H-E-B accounted for over 45% of the region's grocery industry last year. 📊 While Kroger took the market share crown, H-E-B stood out for exceptional average performance per store. Despite securing the second position in total market share, each of H-E-B's 76 Houston locations boasted an impressive average sales figure of $79.7 million, setting a remarkable standard in the industry. 🌮💼 #EdgarDailyMarketMusings #MarketRecap #ChipotleEarnings #RetailTrends 📈🛍️

📈 Ahhh, Thursday. We're almost to the weekend folks. Wednesday saw minimal market fluctuations as investors geared up for more earnings reports. The NASDAQ edged up by 0.10%, the S&P 500 barely moved, finishing just 0.02% above the open, while the Dow Jones dipped slightly by 0.11%. 🌯 Chipotle Mexican Grill Inc. (CMG) raised its annual forecast, riding high on increased demand driven by limited-time promotions like chicken al pastor. The numbers speak volumes: -Revenue: $2.70B vs. $2.67B Expected -Earnings Per Share: $13.37 vs. $11.66 Expected -Same-store Sales Growth: 7% vs. 5.13% Expected What's fueling this success? High-priced limited-time offerings such as Braised Beef Barbacoa and Chicken al Pastor, despite challenging market conditions. Although foot traffic rose by 5.4%, the average spend per customer saw a modest 1.6% increase, slightly below the predicted 2.0% rise. 🚀 Chipotle's expansion plans are in full swing. In Q1 alone, they opened 47 new restaurants, with 43 featuring Chipotlane drive-thru concepts. Their vision for the year? Introduce between 285 and 315 new establishments, with over 80% embracing the drive-thru concept. They aim to hit a total of 7,000 restaurants across North America in the future, doubling the current count of 3,500. 🛒 In 2023, Kroger clinched the top spot in Houston's grocery wars, surpassing H-E-B and affiliates to become the supermarket with the largest market share in the Houston area, commanding 22.7%. Together, Kroger and H-E-B accounted for over 45% of the region's grocery industry last year. 📊 While Kroger took the market share crown, H-E-B stood out for exceptional average performance per store. Despite securing the second position in total market share, each of H-E-B's 76 Houston locations boasted an impressive average sales figure of $79.7 million, setting a remarkable standard in the industry. 🌮💼 #EdgarDailyMarketMusings #MarketRecap #ChipotleEarnings #RetailTrends 📈🛍️

Why Hy-Vee’s Shift Back to Market Grille is a Strategic Win Hy-Vee’s decision to convert all 79 Wahlburgers locations back to its in-house Market Grille brand underscores a growing trend in the grocery industry: the importance of tailored, in-store foodservice experiences that align with customer expectations. This move isn’t just about swapping brands—it’s a strategic pivot aimed at capitalizing on a booming segment while better controlling operations, costs, and customer satisfaction. Why This Matters Foodservice is Growing Rapidly: It is a business that is continuing to grow as customers increasingly look for convenience and quality while grocery shopping. Hy-Vee’s shift allows it to focus on refining its offerings in a way that directly meets this demand. Operational Control & Brand Alignment: By transitioning away from the Wahlburgers franchise model, Hy-Vee can better align foodservice operations with its broader brand values and customer base. With 175 Market Grille locations and 46 Market Grille Express restaurants, the company is now positioned to deliver a unified dining experience at scale. Customer-Centric Offerings: The new Market Grille menu will focus on breakfast and burgers, key categories that resonate with Hy-Vee’s core customers. Convenience for Modern Shoppers: With dine-in, takeout, and third-party delivery options, Hy-Vee is tapping into the multi-channel foodservice trend, ensuring its offerings meet the needs of busy, on-the-go customers. #GroceryInnovation #FoodserviceStrategy #InStoreDining #HyVee #MarketGrille #RetailTransformation

Casey's General Stores saw higher net income despite lower revenue in the fiscal second quarter, thanks to improved same-store sales fueled by the prepared food and dispensed beverage category. https://lnkd.in/dqpYZZJk

Change is afoot and venerable Market Hall Foods is, sadly, not immune as they close their Berkeley location while keeping Rockridge in Oakland open. These are tough but necessary choices that reflect the push and pull of increasing cost and uncertain demand. This follows recent closures across the country including Foxtrot and Dom's Kitchen & Market. Folks often lament these closures and posit what they believe to be the issues driving the moves, but the below article lays in stark relief some of the commonalities that thread through the industry as it hits some inevitable bumps. Contrary to what we have all long believed, more and bigger is not always better, and there is no shame in taking three stores to two, or two to one, if it means that the core business model and consumer value proposition can remain viable and healthy, if not compelling. Let's patronize our specialty retailers and be intentional about supporting not only them, but the smaller producers they feature that are vital to our food and beverage ecosphere! #retail #retailclosing #specialtyfood #retailtrends #supportsmallbusiness